The Yahoo board has given Microsoft a two finger salute in rejecting their $50 Billion dollar bid to buy the online portal.
The board of Yahoo has decided to reject Microsoft’s unsolicited takeover offer. Wghile not offical it is expected that later today (Monday) Yahoo will dismiss the $50b offer as being inadequate.
When it was made, Microsoft’s $31 a share offer was 62% above the level at which Yahoo’s shares were trading.
Yahoo’s shares closed on Friday at $28.75, suggesting doubt among traders that the offer would be successful or that a higher price would be offered.
A source quoted by the Wall Street Journal said that Yahoo’s board would be unlikely to consider anything below $40 per share.
A $40 a share offer would be a 109% premium to the $19.18 closing price of Yahoo’s shares the day before the original offer was announced.
Yahoo’s shares have not traded above $40 for two years.
Although its shares have fallen sharply since then, Yahoo’s websites remain among the world’s most popular.
Yahoo’s share price falls have come as it has struggled to compete with Google, which has also been a big competitor for Microsoft.
Microsoft’s shares have fallen 12% since it made its offer, which may reflect concerns that it has already offered too much or that such a large deal would distract its management away from its core software business.
As a result of the falling share price, Microsoft’s cash and share offer is now only worth $41.8bn.
Microsoft and Yahoo have both declined to comment on the reports.